Asia Pulp & Paper's Debt Troubles
Don't Deter Some Fund Managers

By

Sarah McBride Staff Reporter of The Wall Street Journal

Updated Feb. 8, 2001 12:01 a.m. ET

Just when Asian bond funds appeared to be perking up, along came the Asia Pulp & Paper debacle.

APP, the region's largest bond issuer outside Japan, has some $9 billion to $10 billion in debt. Last week, one of its major subsidiaries, Pabrik Kertas Tjiwi Kimia , failed to make interest payments due on two different bonds. Although it made one payment Tuesday, within a five-day grace period, and has 30 days to pay the other, the...